Special Privilege For The Rich?

June 11, 1985|The Morning Call

"Four (tax brackets) is not a disaster." - Rep. Dan Rostenkowski.

It had to happen. At a time when every other word emanating from the White House and Capitol Hill is "reform," as in "tax reform," the Democratic tax reformers want to grant a special privilege to the rich.

Perhaps, "privilege" is not quite the correct word. Special category is closer to the mark. Anyway, word from Capitol Hill is that Dan Rostenkowski, the Democratic chairman of the House Ways and Means Committee who initially had some complimentary things to say about the fairness of President Reagan's tax package, has suggested that a new tax bracket for rich Americans be added to the administration's proposed three brackets.

Instead of reducing the dozen tax brackets in the present law, which range from 11 percent to 50 percent, to three -15, 25 and 35 percent - Mr. Rostenkowski has floated the idea about that Americans with over $200,000 in yearly income deserve a tax bracket all their own - 40 percent to be exact. That sounds like a 5 percent "privilege" tax to us.

Perhaps, "exact" is not quite the right word, either. Now that partisan politics has raised its ubiquitous self-serving head,it is highly unlikely that the words "fairness," "reform," and "simplification" will survive as apt describers of the 1985 tax merry-go-round.

Even American taxpayers, most of whom agreed that the president's tax plan was fair when it was presented, have now begun to express doubts about that. The Democrats have seized the opportunity to consider writing their own tax bill. The Republicans on Capitol Hill are treading water, waiting to see whether Mr. Reagan's "new populism" on tax revision will fly, or whether it will be preempted by the Democrats, under of banner of Democratic fairness.

As usual, when congressional Republicans and Democrats clamor over a popular issue that has captured the public's imagination, each anxious to stamp its party lable on a national winner, it is the taxpayer who usually gets squeezed - as usual.